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The geopolitical and market bogeymen of the moment – Kim Jong Un, Vladimir Putin, tariffs, cyber warfare – are riding tall in the saddle.
That’s sparked something of a “flight to safety,” which ignited a bit of an uptick in demand for Treasuries this …

If targeting political extremes generates the most profit, then that’s what these corporations will pursue.As many of you know, oftwominds.com was falsely labeled propaganda by the propaganda operation known as ProporNot back in 201…

This weekend, I’d like to take a slightly nostalgic trip down Memory Lane, into the dark, swirling menacing pool that was the dawn of the Internet. OK, that sentence didn’t end up quite where I meant it to.

When I started my newsletter business in October of 2000, I decided to have a little fun with it on this new thing called the World Wide Web, aka “the internet.” If you, like me, are of a certain age, you remember well that we started every web address with the ubiquitous www.

WSJ: “Ten Years After the Bear Stearns Bailout, Nobody Thinks It Would Happen Again.” Myriad changes to the financial structure have seemingly safeguarded the financial system from another 2008-style crisis. The big Wall Street financial institutions…

It has been 2 months since I last had a chance to respond to reader comments. This seems like a good time to pause and take the opportunity to do so again. Keep them coming!

Today, since I’m in a contrarian mood, I thought I’d focus on ever-so-kindly replying to people who don’t see eye to eye with me…

I really enjoy these exchanges. They get my creative analytical juices flowing, and force me to consider alternative viewpoints which I may not have done initially.

In fact, the more rebuttals I write, the kinder I feel! Which is why I’ve decided to report a special gold opportunity today (continuing our prickly theme with an investment that is the very definition of contrarian right now).

If indeed this inflation hysteria has passed, its peak was surely late January. Even the stock market liquidations that showed up at that time were classified under that narrative. The economy was so good, it was bad; the Fed would be forced by rapid economic acceleration to speed themselves up before that acceleration got out…

Since falling to a low of $42.48 in June, oil prices have surged 23.39% to today’s price of $52.19. And the gains aren’t stopping there according to our oil price forecast…

WTI crude oil prices have been volatile over the last year, but we’re finally seeing signs that oil prices are steadily rising to our target price.

In fact, Money Morning Global Energy Strategist Dr. Kent Moors’ September oil price target was right on the money. In July, when oil prices were around $45 a barrel, Moors predicted they’d rise to $52 a barrel by the end of September. Crude prices hit $52.22 on Sept. 25.

Liquidity moves markets!

Now, Moors’ next oil price prediction is out for the end of the year, and it’s good news for oil investors. Here’s why oil prices are rising, including Moors’ exact oil price forecast…

Oil Prices Are Heading Even Higher in 2017

There are two key reasons oil prices are heading higher this year.

First, the global demand for oil is rising.

The International Energy Agency’s latest oil demand report shows global demand for oil rose by 1.2 million barrels a day between the first quarter of 2016 and the first quarter of 2017. Plus, it’s forecasting demand to keep rising.

“Globally, the IEA, EIA, and OPEC have now all revised their expectations for oil demand up (again),” according to Moors.

“We’ll end 2017 at the highest daily demand level in history.”

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Rising demand is a bullish indicator for oil prices, because more demand means oil can command a higher price. And that’s especially true if the oil supply stays flat…

Second, OPEC’s oil production cap is keeping a lid on excess supply.

When OPEC and 11 other countries agreed to cut their oil production on Nov. 30, 2016, oil prices immediately rallied. The price of oil jumped 11% the week the deal was announced, rising from $45.66 on Monday, Nov. 28, to $51.70 on Friday, Dec. 2.

But the rising price of oil spurred American shale oil producers to pump more oil, and oil traders bid the price of oil back down. Oil futures hit a low of $42.48 in June.

Now, after renewing the deal in May, OPEC is showing it’s committed to curbing excess oil supply over the long term.

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In fact, if oil prices don’t keep climbing, Saudi Arabia has said they will push for an even deeper cut through OPEC next year.

But that might not be necessary. OPEC has sported a compliance rate with the cuts as high as 95%, and production across OPEC has fallen roughly 1 million barrels year over year.

It’s not just OPEC managing the supply of oil, either. American producers are no longer flooding the market with oil whenever the prices rise. American producers are maintaining steady production growth instead. The supply of crude oil in the United States fell by over 2% during the summer. The month of July saw the stock of crude oil in the United States drop below 2 billion barrels for the first time since early 2016.

And while oil prices are already rising this year, we’re seeing signs that they’re heading even higher…

Our Oil Price Forecast for the End of 2017

Dr. Kent Moors says WTI oil prices could gain another 10% this year, reaching a potential high of $57 a barrel.

Moors expects crude to reach a range between $55 and $57 a barrel by the end of 2017.

While Moors says the realities of OPEC’s oil production cut and rising demand will boost oil prices, he says there’s another key indicator showing WTI prices are heading higher.

You see, Brent is the benchmark for international oil prices, while WTI is the benchmark for U.S. oil prices. And Brent typically trades at a higher price than WTI, because it’s the international measure for oil prices. The higher demand for Brent contracts boosts its price over WTI, but it also means when global oil sentiment changes, it’s seen first in Brent prices.

While Brent crude typically trades higher than WTI, Moors says that the growing spread between Brent crude and WTI is a sign that WTI is heading higher soon. In other words, since Brent prices move first, WTI is soon to follow.

Back in August, the spread between Brent and WTI grew to more than 8%, the first time it reached that level in two years. Since then, the spread has grown to more than 10%.

Now Brent crude is currently trading at $58.48 a barrel, while WTI is at $52.55 a barrel – an 11% difference.

Moors says the last time Brent traded a double-digit percentage higher than WTI, the price of WTI spiked.

“All of this seems to indicate that a rise in the spread, occurring early in a new process, may well be a harbinger of a higher overall pricing dynamic moving forward,” Moors said.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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